Macerich Continues to Sell Lower-Quality Assets to Concentrate Portfolio on Highest-Quality Malls

Macerich has successfully repositioned the company over the past decade as a true owner and operator of Class A regional malls. Over the past 20 years, the company has sold nearly $5 billion in mostly lower-quality assets and recycled the capital into acquiring new Class A malls, with over $500 million of those sales coming in the past year as managment looks to reduce company leverage. As a result, the company's portfolio should produce higher tenant sales productivity, occupancy levels, and rent and therefore is much better-positioned to face the economic headwinds of e-commerce. We expect Macerich to continue improving its portfolio through redevelopment, opportunistic acquisitions, and asset sales, which should deliver strong earnings growth for Macerich over time.